Newsletter

Changes of Investment Structure in Mineral and Coal Mining Sector
Indonesia's Minister of Energy and Mineral Resources has recently relaxed regulations on changes in investment structures within the mineral and coal mining sector. In the past, changes such as those in investments, financing source, investment status (Foreign Investment or Domestic Investment), Articles of Association, could only be performed after obtaining ministerial approval.1
Now, through the Regulation of the Minister of Energy and Mineral Resources No. 11/2018, any increase in authorized capital, subscribed capital, and paid-up

Developer and Buyer Guide for Executing the Engagement Agreement for Sale and Purchase of Land and Building ("PPJB")
The Ministry of Public Works and Housing has enacted Regulation No.11/PRT/M/2019 (the "Regulation") regarding PPJB on 18 July 2019. The Regulation is applicable to sale and purchase transactions of residential real estate and properties, including private houses, private commercial houses, cluster houses, and apartment units. In the PPJB context, the term "Developer" refers to both an individual and legal entity.
The Regulation regulates PPJB transactions, which are usually entered by ...

The Rise of Insurance Technology in Indonesia
The insurance industry in Indonesia began during the Dutch colonial period, presenting itself as one of the many mechanisms to secure the Dutch's trading activities. Indonesians are vaguely familiar with the benefits of insuring themselves against loss, damage, illness or death - ultimately, this lack of awareness materializes in the low adoption rates of insurance coverage.
The Jakarta Post reported that only 1.7 % (one point seven percent) of the population have insurance, and as a result, Schinder Law Firm sees a substantial opportunity for the insurance business to grow rapidly in Indonesia...

The Impact of the European Union's General Data Protection Regulation on Indonesian Companies
The European Parliament and the Council of European Union enacted Regulation 2016/679 on 25 May 2018, known as General Data Protection Regulation ("GDPR"). The GDPR provides a set of standardized data protection laws, which are intended to make it easier for consumers worldwide to understand how their data is being used.
GDPR has extra-territorial application outside European Union ("EU") member states, and therefore affects data processing activities of controllers in other countries including Indonesia, where goods and services ...

ASOSIASI FINTECH PENDANAAN BERSAMA INDONESIA (AFPI) & the Supervision Peer-to-Peer Lending Companies In Indonesia
Indonesia's peer-to-peer lending industry is experiencing massive growth. To help regulate institutions in the space, on October 5th, 2018, the Indonesian Financial Services Authority (OJK) established Asosiasi Fintech Pendanaan Bersama Indonesia (AFPI), the country's official association for peer-to-peer lending businesses.
OJK inaugurated the association through Letter No. S-5/D.05/2019 dated March 8th, 2019, and now requires every peer-to-peer lending company...

Schinder Law Firm Hosted Atma Jaya University's Summer Course on Business Law
On 24 July 2019, Schinder Law Firm hosted a full-day class of Atma Jaya University's Summer Course on Business Law. The international students participating in the Course are from Afghanistan, Egypt, Eritrea Iraq, Sudan, Somalia, Taiwan, and Vietnam. The class was intellectually stimulating and culturally enriching for both our firm and the students.
Our Senior Advisors Professor IBR Supancana and Dr Bambang Supriyanto, who are also faculty members of the University, delivered lectures on Indonesian investment and employment laws...

The Regulations of Emissions Quality Standards in Thermal Power Plants
Jakarta's sky consistently finds itself shrouded in a blanket of pollution, followed by hundreds of citizens using their smartphones to monitor the air quality. On a car free day, many pose the question: is today's pollution safe enough for me to exercise outside? Although the city's steep pollution comes as no surprise to many inhibitors, the citizens of Jakarta are beginning to take serious actions against the government to demand better air quality.
In light of the topic of air quality standards, Schinder Law Firm highlights a new regulatory policy: the Minister of ...

Public Services Shutdown for Company and Business Domicile Letter in Jakarta
Jakarta, Indonesia's capital and commercial center, is taking a big step to improve the ease of doing business in the country. Jakarta's Investment and One-Stop Services Agency (Dinas Penanaman Modal dan Pelayanan Terpadu Satu Pintu Pemerintah Provinsi Daerah Khusus Ibukota Jakarta-"PTSP DKI") has recently issued Announcement Number 27 of 2019, regarding the Public Services Shutdown for Company Domicile Letter Non-License and Business Domicile Letter.
Company Domicile Letters...

FILING A CLASS ACTION LAWSUIT IN INDONESIA
We commonly hear about a class action lawsuit filed on the television or in the newspaper, but often, fail to understand the principle, mechanism and requirements that lay the foundations of a class action. A class action lawsuit is a type of procedure, whereby one or more individual(s) that represent a group of people file for an issue that possess similar facts or legal basis, in accordance set forth by Article 1 (a) Perma 1/2002. The individual(s) who represent the group are referred to as the 'class representative(s),' bringing the claim to the court on behalf of the group that are filing; these are ...

Industrial Business Licensing for Alcoholic-Beverage Production
In parts of Indonesia, drinking is an inseparable part of the indigineous culture, playing a large role in cultural festivals and social gatherings. Traditional alcoholic beverages are often brewed in backyards, made by fermenting rice, sugar cane, and palm sugar, then flavoring with herbs. Some of the more notable drinks are Arak Bali (Balinese rice wine), Ciu (Javanese vodka), Tuak (Sumatran rice wine), and Saguer (Minahasan palm sugar fermented drink).
Alcoholic beverages from outside Indonesia - such as...

With Rights Come Responsibilities: Sustainable Development and Gender Empowerment under the 2019 Netherlands Model BIT
The 2019 Dutch Model BIT is a refined version of the initial draft that the Dutch Ministry of Foreign Affairs published on 16 May 2018. This initial draft was subject to public consultation. Based on this input, the Ministry amended the draft. The amended draft was discussed in parliament, pursuant to which further changes, including on

English as Prevailing Language in an Agreement: The Indonesian Law Perspective
According to the Indonesia Investment Coordinating Board (BKPM)'s report of the country's investment realization in Q1 2019, foreign direct investment increased relative to the same time period in 2018 - in part, driven by the increase in the number of foreign owned companies in Indonesia, the country saw a rise in the number of transactions and agreements entered. For many of these multinational companies, English is the preferred language of business, used in formal agreements and documentation.
In Indonesia, Law No. 24 of 2009, concerning Flag, Language,...

Search and Seizure 101
Criminal cases are high risk legal issues. Often, they are disruptive to everyday business operations - companies are subjected to crippling fines, or public relations disasters. In Indonesia, proceedings for such cases are split into two stages: inquiry (penyelidikan), then investigation (penyidikan). In the inquiry stage, law enforcement officers try to establish whether a specific event actually constitutes a crime. If the event indeed constitutes a crime, an investigation, which includes the gathering of evidence and finding of suspects, will ensue...

Hate Speech in Indonesia
In its simplest form, Hate Speech is a statement intended to demean and brutalize another.
It is the use of cruel and derogatory language, gestures or vandalism often directed towards an individual or group. The Indonesian National Commission of Human Rights (Komisi Nasional Hak Asasi Manusia or Komnas HAM) defines Hate Speech as "any action and effort, either direct or indirect, committed based on hatred towards a tribe, religion, belief/faith, race, skin color, ethnicity, disability, and sexual orientation which are incitement against an individual or group of individuals to inispire discrimination...

The Act of Gratification in Indonesia
Gift giving promotes the spirit of maintaining relationships in Indonesia. Often, it extends to both domestic and international travels: Indonesians who are returning from their travels will bring back oleh-oleh, which are gifts acquired from the destination for their families, friends, and colleagues. These gifts represent a token of friendship and care - however, gift exchange to an Indonesian public officer or civil servant may constitute itself as Gratification.
The Indonesian law define Gratification as the act of giving money, goods, discounts, commissions, loans without interest, travel tickets, accommodations, treatment, and other facilities. These 'gifts' are ...

STORYTELLING TRAINING
As part of our continuing professional development program, Schinder Law Firm invited Bjorn Turmann of Speaking Energy Co Ltd (Hong Kong) to deliver a workshop on public speaking for our lawyers and staff.
However, we got more than we bargained for. Bjorn thinks 'public speaking' is so 20th century, he prefers 'storytelling'. Bjorn showed us the power of silence as communication tool, mastering the first 3 minutes, and how to use 'Scene Thinking' and the ARC methods-employed by Hollywood- in building our 'stories', i.e. the substance in any presentation....

Schinder's Lawyer Invited to Speak in the Young Social Entrepreneur Program in Singapore
One of our lawyers, Andri Rizki Putra was invited to share his views and knowledge as a key opinion leader representing Indonesia in the social entrepreneurship program held by Singapore International Foundation on March 20th through 24th. Rizki shared his experience in running a not for profit education institution Yayasan Pemimpin Anak Bangsa (YPAB) to more than 100 aspiring young social entrepreneurs from 31 countries.
Outside his professional life as a lawyer, Rizki is an activist advocating equal access to education in Indonesia. Through YPAB, Rizki and...

QR Code Explained
A phone is no longer 'just' a phone today. From music to meal-planning, they can now add to our lives in a variety of ways. Of course, many people use smart phone technology to make payments for daily purchases such as food and beverages with a little something called a 'QR (Quick Response) Code'. Just scan the code on your smartphone screen and you are good to go with the tasty treats you are buying. The perks don't stop there-you will often also enjoy a discounted price or even cashback. The vendors who accept QR Code payments vary in business types and sizes, from fancy restaurants in big shopping malls to food stalls (warungs) behind your office building...